Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 8 January 2007.
Michael Weir
Shadow Spokesperson (Work and Pensions), Shadow Spokesperson (Trade and Industry)
2:30,
8 January 2007
What recent discussions he has had on extending the winter fuel allowance.
James Purnell
Minister of State (Pensions Reform), Department for Work and Pensions
The Government keep all tax and welfare policies under review and any changes are considered as a part of the normal Budget and spending review processes.
Michael Weir
Shadow Spokesperson (Work and Pensions), Shadow Spokesperson (Trade and Industry)
I thank the Minister for that answer. He will be aware that a coalition of charities called for an extension of the winter fuel allowance to those people under the age of 60 who are particularly vulnerable in cold conditions and who receive long-term benefits. Indeed, the Government's own energy review accepted that there was a problem in that area. Has the Minister pressed the Chancellor to use some of the massive £1 billion increase in VAT receipts, arising from the increase in fuel Bills over the past year, to extend the winter fuel allowance to such groups?
James Purnell
Minister of State (Pensions Reform), Department for Work and Pensions
That is not my ministerial responsibility, so it is not my job to do so. The key things are that recent falls in wholesale prices should be passed on to customers soon and that we protect the most vulnerable. I remind the hon. Gentleman that in 1996, only £60 million was spent on the problem, but now more than £2 billion is spent on it. I am sure that he welcomes that.
David Taylor
Labour, North West Leicestershire
Will the Minister congratulate the excellent regional and county newspaper, the Leicester Mercury, on its campaign to highlight the fact that, given the inflation in energy prices, the winter fuel allowance buys rather less fuel than it did when it was set? It has urged county MPs to make a submission to the Chancellor—possibly the future Prime Minister—and I have agreed to do so. Will my hon. Friend allow his signature to be added to my letter?
James Purnell
Minister of State (Pensions Reform), Department for Work and Pensions
I think that I would probably have to resign from the Government if I did that, so no, I will not give my hon. Friend that promise. The winter fuel allowance has increased far faster than inflation and energy prices. It was £20 when it was first introduced, but it is now over £300 for people over 80, which is a much faster rise than the increase in utility prices. The key thing is that the cuts in wholesale prices are passed on to customers, particularly the most vulnerable, as soon as possible.
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